Lufthansa keeps 2026 outlook despite $2 billion fuel hit
- On Wednesday, Deutsche Lufthansa reported a narrowed first-quarter adjusted loss of €612 million, beating analyst expectations, while revenue rose to €8.7 billion.
- The Middle East conflict poses "enormous challenges" for Lufthansa, which expects to take on €1.7 billion in additional fuel costs this year despite hedging about 80% of its 2026 fuel needs.
- To combat rising expenses, Lufthansa has decommissioned older aircraft and cut roughly 20,000 short-haul flights, while planning to reduce 4,000 administrative jobs by 2030 and shift capacity to City Airlines where crew costs are up to 40% lower.
- The International Energy Agency warned last month of potential fuel shortages due to the Strait of Hormuz blockade, compounding pressures across Europe as British carrier EasyJet reported €25 million in additional fuel costs in March.
- While Lufthansa confirmed its full-year earnings outlook remains "significantly above" last year's figure, the company cautioned that the "risk-opportunity profile has shifted toward risks" due to potential reduced fuel availability later in 2026.
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Despite the Iran war, Lufthansa performed surprisingly well in the first quarter. At the same time, the Group wants to earn significantly more in the full year than in the previous year. Investors like to hear this.
The German air group reported that the result before interest and taxes (Ebit) adjusted was negative at 612 million euros (US$ 715.7 million) in the quarter, in the face of the loss of 722 million euros presented a year before
The airline group benefits from the failure of the airlines on the Persian Gulf in the first quarter. Despite high kerosene prices, the management believes it can keep its own forecast.
In spite of the uncertainties caused by the Iran war, Lufthansa intends to significantly increase its profit in the current year. The aim is to achieve an adjusted operating result "significantly" above the previous year's figure of 1.96 billion euros, the Group announced on Wednesday. "Global demand for air travel remains high and shows itself robust even in times of crisis," explained Lufthansa. Against this background, the Group expects "a ne…
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